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Social Security Schemes And It's Benefit To Workers

The scheme targets vulnerable areas in the country, including informal workers and unorganised sector. Through this scheme, the government works for workers development by offering monetary assistance and protecting them from any uncertainty. They contribute to the development of different sections of society with medical care, food for survival, and unemployment compensation.

Here, we will discuss the various types of social security schemes that are incorporated by the government for benefit of workers.

Types of Social Security Schemes

1. Healthcare and Medical Benefits

Employee Medical Benefits is one of the crucial schemes for providing employees with good health and well being. There are different forms of medical benefits provided to workers, like medical insurance, eye care, an employee wellness program, and counselling. These facilities are not only insured for particular workers but also for their families. Prioritizing health care for employees contributes to better employee retention and increased productivity in the workforce.

2. Suraksha Bima Yojna

This Yojna of the social security system provides accidental death insurance and residual disability insurance. In case of death, this yojana provides Rs 2 lakh to the authorized nominee of the policyholder as compensation. On the other hand, if the individual becomes permanently disable, they will get Rs 2 lakh as insurance. 

3. Pension System

As part of this provision, employees receive a special pension amount after retirement based on their years of service and salary. It is designed for employees benefits that provide retirement income after termination of covered employment.

4. Provident Fund

Similar to a pension plan, it is the same as a retirement fund, but contributions are made by both the employer and the employee. Both the employer and the employee make regular contributions to the Profident Fund, and this is reflected in the employee's PF account. PF full and final settlement can be withdrawn upon retirement for specific purposes like buying a house, education, or medical emergencies.

5. Confinement Expenses

Confinement Expenses is given to employees in case of employment loss. Loss of employment can be due to specific reasons, such as permanent disability due to factory closure, layoff, or off-the-job injury. The premium payments have been effectively paid after two years of being unemployed.

6. Gratuity

Gratuity is a financial component provided by employers to employees in recognition of their contributions to the organization. However, gratuity is only paid to employees who have worked for the company for more than five years. 

After discussing the types of social security schemes, let's delve into the benefits of such schemes for workers.

Benefits of Social Security Schemes to Workers

The social security system has many benefits for employee well-being and also provides financial support. Here are some major benefits.

1. Income security in retirement

Social Security provides retirement benefits so that workers have a stable source of income after retirement. This help the retirees to keep some savings and maintain a basic standard of life.

2. Disability Benefits

This system is of great benefit to people who have become disabled and are no longer able to work. This will help workers and their families overcome financial hardship by covering living and medical expenses.

3. Healthcare Coverage

It provides health benefits by providing access to medical care and insurance coverage. This program provides financial support for the cost of medical services during difficult times, such as serious injuries or illness.

4. Survivor Benefits

Social security schemes often provide benefits to the families of deceased workers. These survivor benefits can help spouses, children, or dependents maintain financial stability after the primary breadwinner passes away.

5. Unemployment Benefits

Social insurance programs include unemployment benefits to support workers who have unwillingly lost their jobs. This provides a temporary income allowance until the worker finds a new job opportunity.


In conclusion, social security schemes play a crucial role in safeguarding the well-being and livelihoods of workers across various sectors. By targeting vulnerable areas and informal workers, these schemes offer essential support, including healthcare, pf full and final settlement, financial assistance, and protection against uncertainties like disability or unemployment. Through initiatives such as healthcare benefits, accident insurance, pensions, and provident funds, workers are provided with a safety net that ensures income security in retirement and during times of crisis. 

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